Thanks for the info. I really looked for a US PAMM account that would work with my system, but alas, it is a futile search I think.
My problem is that I trade two systems at the same time. As I do not qualify signals based on previous entries I often find that one system will open a trade going long and then, two days later, the other system will give a signal calling for a short position on the same pair even though no conclusion has been realized on the first one. This means that the systems, when worked together, are not very friendly with the anti-hedging regulations in the U.SâŚthey also are not compatible with the FIFO regs either. So, no U.S. PAMM account for me.
ROFL, this is quite entertaining. 1.3% annual return is just so ridiculously fake. Thanks for the laughs tho 
Thanks for the info. I really looked for a US PAMM account that would work with my system, but alas, it is a futile search I think.
My problem is that I trade two systems at the same time. As I do not qualify signals based on previous entries I often find that one system will open a trade going long and then, two days later, the other system will give a signal calling for a short position on the same pair even though no conclusion has been realized on the first one. This means that the systems, when worked together, are not very friendly with the anti-hedging regulations in the U.SâŚthey also are not compatible with the FIFO regs either. So, no U.S. PAMM account for me.
I understand your frustration. Its sad that regulation is directly affecting my income now. I donât think they realize how many good people they hurt while trying to âprotectâ the public. I have been considering getting citizenship elsewhere because of it.
Iâd believe anything in the 1-6% range, particularly after fees are removed.
It might be accurate. It may be the case that a certain number of hedge funds take a loss for the year and this drags the average down.
Of course, one might say that such hedge funds might go out of business if they take losses on the year, but thatâs not necessarily so. Just as we might have a bad month and tell ourselves âjust brush it off. You canât win every month. Just wait until the end of the year before you start badmouthing your own system.â people who invest in hedge funds might tell themselves something similar but along the lines of âyou canât win every yearâŚthis fund has earned me money the last two years in a rowâŚI still have more money now than I did two years ago and itâs more than I would have had if I has invested in the S&P 500âŚetcâ
Since different hedge funds might be the ones taking the losses on any given year, it might be the case that every year different funds pull the average down. This year the statistic ended up at 1.3%. I can see it happening.
If a hedge fund is making 1.3% a year then it will def go into bankrupt. I rather put my money in a savings account and earn the same amount risk free rofl!
Most of them do go under not too long after forming for a number of reasons. Also, many hedge funds (successful ones) have a strong short bias portfolio. They seek to excel with high returns in bear markets and remain as flat as possible in bull markets. Most portfolios, individual or institutional, are 100% biased to the long side. If the markets go up they profit. If the markets go down they get hammered. Allocating a percentage of investment to a short-biased hedge fund permits the portfolio to profit in up markets and take a much smaller hit in down markets because it is hedged by â a hedge fund.
The markets were up this year. Most hedge funds suck and lost lots of money and will not be around very long (being replaced, primarily, by other hedge funds that suck). Many of the successful hedge funds with a short bias did exactly what they were supposed to do which is remain flat in a year with overall market gains.
Combining the performance results of all hedge funds that they could find showed, combined, the average profit was 1.3%. It seems a bit low to me (most hedge funds are not short-biased) but certainly believable. What were the average results of balanced mutual funds over the past 5 years? About the same. Why? Markets over the past 5 years were mostly down and most managed funds canât even beat the S&P 500 index.
I donât find the 1.3% very surprising at all. Since competent investors never make exclusive use of hedge funds to begin with they are just feeling the âhigh riskâ portion of the âhigh risk/high rewardâ equation.
I am assuming these can be quarterly values because no banks would operate at such a low return level.
Imagine, 1.3% of $1 Billion. They are wiping their butts with Benjaminzzz.
If hedge funds operated like real hedge funds Iâd get excited about 1.3% returns.
On the other handâŚthereâs a lot of overhead at a large bank. Lots of bills to pay. Iâm guessing that $10M doesnât cover the interest on the mortgage for all the real estate they have mortgages on. Keeping those places running isnât cheap either and weâve not even begun to explore the cost of employing people at those places.
Sry for reviving this thread,
i m looking at this from another perspective.
If The very Best performers made 20% (profesional level), can a retail investor like most of us, trading our own money, ever hope to achieve consistently greater returns?
If not, thatâs bad news for someone who has âonlyâ $10k to invest.
If we can perform better, does that mean we have an edge over them? What is our edge? Will they hire us for performing better than their staff?
Youâre always going to get mixed views on this discussion, which really has been discussed above to the point of running dry.
But, you canât compare retail trading and commercial funds as one of the same, itâs not apples and apples.
The three biggest factors which contribute to funds making what retail traders consider as a âsmall returnâ is:
- They donât use leverage, or at least very minimal leverage
- They want stable risk adjusted returns
- They have huge amounts of capital to deploy [which all needs deploying, investors donât want to see a fund not putting money to use]
These three points are all opposites of the successful retail trader.
Try making 3-5% a month [very achievable as a retail trader] on an account worth $1bn when your âinvestorsâ donât want you to exceed a delta value of +/- 3.0% pa. Youâre going to struggle to make that in a year.
Makes sense to me
Thank you for your response! 